FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2026

Estimated Fair Values of Financial Instruments

The estimated fair values of First Financial’s financial instruments not measured at fair value on a recurring or nonrecurring basis in the consolidated financial statements were as follows:


	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
March 31, 2026
Financial assets
Cash and interest-bearing deposits with other banks	$	1,202,900	$	1,202,900	$	1,202,900	$	0	$	0
Investment securities held-to-maturity	49,631		45,373		0		45,373		0
Other investments (1)	12,661		12,661		1,613		40		11,008

Loans and leases	13,311,125		13,183,121		0		0		13,183,121
Accrued interest receivable	79,692		79,692		0		22,102		57,590

Financial liabilities





Deposits	17,918,722		17,909,049		0		17,909,049		0
Short-term borrowings	620,457		620,457		620,457		0		0
Long-term debt	380,176		330,944		0		330,944		0
Accrued interest payable	39,216		39,216		2,646		36,570		0


	Carrying		Estimated fair value
(Dollars in thousands)	value		Total		Level 1		Level 2		Level 3
December 31, 2025
Financial assets
Cash and interest-bearing deposits with other banks	$	775,891	$	775,891	$	775,891	$	0	$	0
Investment securities held-to-maturity	58,545		54,334		0		54,334		0
Other investments (1)	12,898		12,898		1,850		40		11,008

Loans and leases	13,237,583		13,061,341		0		0		13,061,341
Accrued interest receivable	71,940		71,940		0		17,833		54,107

Financial liabilities





Deposits	16,421,842		16,415,852		0		16,415,852		0
Short-term borrowings	675,332		675,332		675,332		0		0
Long-term debt	514,052		473,291		0		473,291		0
Accrued interest payable	38,304		38,304		2,918		35,386		0

(1) FHLB stock and FRB stock of $124.4 million and $116.7 million as of March 31, 2026 and December 31, 2025, respectively, are excluded from the numbers above.

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements were as follows:


	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
March 31, 2026
Assets
Investment securities available-for-sale	$	95	$	4,916,487	$	36,441	$	4,953,023
Loans held for sale	0		18,280		0		18,280
Interest rate derivative contracts	0		66,116		0		66,116
Foreign exchange derivative contracts	0		391,874		0		391,874
Interest rate collars and floors	0		465		0		465
Commodities contracts	0		5,726		0		5,726
Total	$	95	$	5,398,948	$	36,441	$	5,435,484

Liabilities
Interest rate derivative contracts	$	0	$	65,868	$	0	$	65,868
Foreign exchange derivative contracts	0		391,874		0		391,874

Commodities contracts	0		5,209		0		5,209
Total	$	0	$	462,951	$	0	$	462,951


	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/liabilities at fair value
December 31, 2025
Assets
Investment securities available-for-sale	$	95	$	3,926,021	$	45,816	$	3,971,932
Loans held for sale	0		16,953		0		16,953
Interest rate derivative contracts	0		69,481		0		69,481
Foreign exchange derivative contracts	0		322,172		0		322,172
Interest rate collars and floors	0		708		0		708
Commodities contracts	0		1,578		0		1,578
Total	$	95	$	4,336,913	$	45,816	$	4,382,824

Liabilities
Interest rate derivative contracts	$	0	$	69,570	$	0	$	69,570
Foreign exchange derivative contracts	0		322,172		0		322,172
Interest rate collars and floors	0		0		0		0
Commodities contracts	0		2,078		0		2,078
Total	$	0	$	393,820	$	0	$	393,820

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a reconciliation for certain AFS securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).


	Three months ended
	March 31,
(dollars in thousands)		2026		2025
Beginning balance		$	45,816	$	44,182
Accretion (amortization)		(5,000)		(22)
Increase (decrease) in fair value		4,235		8
Settlements		(8,610)		(830)

Ending balance		$	36,441	$	43,338

Summary of Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table summarizes financial assets and liabilities measured at fair value on a nonrecurring basis.


	Fair value measurements using
(Dollars in thousands)	Level 1	Level 2		Level 3
March 31, 2026
Assets
Collateral dependent loans
Commercial & industrial	0	$	0	$	5,401
Lease financing	0	0		2,138

Commercial real estate	0	0		13,698


	Fair value measurements using
(Dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2025
Assets
Collateral dependent loans
Commercial & industrial	$	0	$	0	$	8,517
Lease financing	0		0		2,499

Commercial real estate	0		0		11,020

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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